Can an American Buy a Car in Canada and Import It?

Yes, an American can buy a car in Canada and import it to the US, but since April 3, 2025, a 25% tariff on imported automobiles sits on top of the standard 2.5% customs duty, and the vehicle still has to clear federal safety and emissions rules before any state will title it. The math and the paperwork have both gotten harder. Work through the full cost and the compliance path before you write a check in Canadian dollars.

What You’ll Actually Pay in Federal Duties

The baseline U.S. customs duty on passenger cars is 2.5% of the vehicle’s value under the Harmonized Tariff Schedule.¹ That number is what older guides quote, and taken alone it’s misleading.

A presidential proclamation effective April 3, 2025 added a 25% Section 232 tariff on all imported automobiles, layered on top of the 2.5% duty.² On a $30,000 vehicle, that’s roughly $8,250 in combined federal duties before you touch state taxes, registration, or insurance. CBP also collects a Merchandise Processing Fee of 0.3464% of the vehicle’s value.³

The USMCA Content Offset

There’s a partial carve-out for vehicles that qualify under the United States-Mexico-Canada Agreement. If the car meets USMCA rules of origin, the importer can submit documentation showing how much of its value comes from U.S.-made parts and labor, and the 25% tariff then applies only to the non-U.S. content portion.⁴ A USMCA-qualifying car with 50% U.S. content on a $30,000 value would face the 25% tariff on $15,000 rather than the full amount.

Nailing down the specific U.S. content percentage is not simple. If CBP later determines you overstated it, the full 25% tariff applies retroactively to every vehicle of that model you imported.⁵ A licensed customs broker is worth serious consideration if you plan to claim this offset.

Safety Compliance and the Manufacturer’s Letter

Every vehicle under 25 years old must comply with all applicable Federal Motor Vehicle Safety Standards. A vehicle not originally manufactured and certified to those standards cannot be lawfully imported unless NHTSA determines it eligible.⁶ Most Canadian-market vehicles from major manufacturers are built to meet both Canadian and U.S. safety standards, with only minor differences.

You prove compliance with DOT Form HS-7 at the port of entry. For most Canadian vehicles, you check Box 2B, the pathway for cars originally certified to Canadian safety standards whose manufacturer confirms they also meet U.S. standards. Box 2B requires a confirmation letter from the vehicle’s original manufacturer.⁷ The letter must be on manufacturer letterhead, identify the vehicle by VIN, and state that it conforms to all applicable U.S. safety, bumper, and theft prevention standards.

Get this letter before you buy. It takes time to obtain, and if the manufacturer will not confirm U.S. compliance for the specific VIN, you are left with a car you cannot legally import. Knowingly making a false declaration on the HS-7 carries a fine of up to $10,000, imprisonment of up to five years, or both.⁷

Emissions Compliance

You also file EPA Form 3520-1 to declare how the vehicle meets U.S. emission standards.⁸ Most Canadian-market vehicles are identical to their U.S. counterparts in emissions equipment. For those, you use code EE, which covers Canadian vehicles identical in all material respects to a U.S.-certified version. Proof can be a Canadian emission control label, Canadian registration or title, or a letter from the manufacturer’s U.S. representative. Vehicles that meet U.S. emission requirements carry an English-language manufacturer’s label in the engine compartment attesting to compliance.⁹

Canadian-Spec Differences That Won’t Block Import

Box 2B on the HS-7 form is designed to accommodate the common differences between Canadian and U.S. vehicles, so these won’t stop the import.

Canadian regulations require daytime running lights that may not match FMVSS No. 108. Box 2B specifically exempts this difference.⁷
Metric-only speedometers or different control labels are allowed under Box 2B (FMVSS Nos. 101, 110, and 120). Some states may require conversion before passing inspection.
Some Canadian vehicles lack a tire pressure monitoring system meeting FMVSS No. 138. You can import under Box 2B, but you’ll need a compliant TPMS installed by a franchised dealer or authorized repair facility, and provide CBP with an invoice showing the installed system uses the same part numbers as U.S.-market vehicles.¹⁰

The 25-Year Exemption

Vehicles at least 25 years old are exempt from FMVSS compliance requirements entirely, so no manufacturer’s letter and no registered importer are needed.⁶ For collector cars, this removes the biggest regulatory hurdle. The 25% Section 232 tariff and the 2.5% customs duty still apply.

Canadian Sales Tax at Purchase

Buying from a Canadian dealership (a GST/HST registrant) generally means paying GST, HST, or a combination of GST and Provincial Sales Tax, depending on the province. Rates range from 5% in Alberta to 15% in provinces like Nova Scotia and New Brunswick.¹¹

Private sales are different. GST/HST generally does not apply to private vehicle sales in Canada, though provinces may still charge their own sales tax at registration. Because you’ll be using a temporary transit permit rather than permanently registering the car in Canada, provincial tax exposure varies.

Do not count on a refund of Canadian tax after export. The CRA’s GST/HST rebate for exported goods (Reason Code 4) applies to commercial goods purchased by non-residents and specifically excludes consumers acquiring goods for personal use.¹² If the car is for personal use, you don’t qualify.

Buying and Moving the Car to the Border

Dealerships handle more of the paperwork but charge higher prices and collect sales tax. Private sellers can offer better deals but require more diligence to verify history and confirm no liens exist.

For any transaction, bring valid photo identification and proof of funds. The bill of sale should include both parties’ names, the purchase price, the VIN, and the date. Verify the VIN on the vehicle matches every document before handing over money. Run a Canadian history check for accident reports, title status, and outstanding liens. Budget for currency exchange as well.

To drive the car in Canada, you need temporary Canadian insurance (your U.S. insurer may extend coverage, or you can buy a short-term Canadian policy) and a temporary transit permit from the province of purchase, valid for a limited number of days. Alternatively, hire a transport service to move the vehicle to a U.S. port of entry. Shipments clear at the first port of entry unless arrangements are made through a freight forwarder.⁹

Clearing U.S. Customs

At the port of entry, declare the vehicle and every item inside it to a CBP officer. Failure to declare the full contents can result in fines or seizure.⁹ You’ll need:

The original certificate of title or a certified copy¹³
The bill of sale and foreign registration
A bill of lading if the vehicle was shipped
DOT Form HS-7 with the manufacturer’s confirmation letter attached
EPA Form 3520-1

After processing, CBP returns a stamped CBP Form 7501. The stamp and signature confirm the import was completed and valid proof of ownership was presented.¹⁴ Keep this form. Without it, you cannot register the vehicle in the United States.¹³

Titling and Registering at Home

State rules vary, but you’ll generally present the stamped CBP Form 7501, the Canadian title or proof of ownership, the bill of sale, and evidence of federal safety and emissions compliance. Expect to pay state sales or use tax on the purchase price, in most states regardless of whether you already paid Canadian tax. Title fees and registration charges range from under $50 to several hundred dollars.

Many states require a safety inspection, an emissions test, or both before first registration. If the speedometer reads only in kilometers, some states may require conversion. Get U.S. auto insurance in place before you register or drive the car on public roads.

Is It Still Worth It?

Before April 2025, buying in Canada made sense when the exchange rate was favorable or a specific model was cheaper or more available north of the border. The 25% Section 232 tariff on non-U.S. content has narrowed that window sharply. On a $35,000 vehicle with no U.S. content credit, combined federal duties and tariffs run roughly $9,600 before state taxes, registration, and insurance. The strongest cases now are vehicles unavailable in the U.S. market, collector cars over 25 years old that sidestep FMVSS compliance, and situations where a solid USMCA content offset substantially reduces the tariff. Run the full cost calculation before you commit.

1
U.S. International Trade Commission. Harmonized Tariff Schedule – 8703
2
Federal Register. Adjusting Imports of Automobiles and Automobile Parts Into the United States
3
U.S. Customs and Border Protection. Customs User Fee – Merchandise Processing Fees
4
Federal Register. Procedures for Submissions by Importers of Automobiles Qualifying for Preferential Tariff Treatment Under the USMCA To Determine U.S. Content
5
White House. Adjusting Imports of Automobiles and Automobile Parts into the United States
6
National Highway Traffic Safety Administration. Importation and Certification FAQs
7
National Highway Traffic Safety Administration. HS-7 – Declaration Importation of Motor Vehicles and Motor Vehicle Equipment
8
U.S. Environmental Protection Agency. Publications and Forms for Importing Vehicles and Engines
9
U.S. Customs and Border Protection. Importing a Motor Vehicle
10
National Highway Traffic Safety Administration. Vehicle Importation Guidelines – Imported from Canada
11
Canada Revenue Agency. GST/HST and Motor Vehicles
12
Canada Revenue Agency. Who Can Apply – GST/HST Rebate – Commercial Goods and Artistic Works Exported From Canada
13
U.S. Customs and Border Protection. Requirements for Importing a Personal Vehicle or Vehicle Parts
14
U.S. Customs and Border Protection. Updated Guidance for Vehicle Importations – CBP Stamping Customs Form 7501